How to Patent An Idea
Nearly everyone has a moment in life where they get a brilliant idea. Some of these people will act on that idea and try to turn it into a real life product that can be sold. Sadly, others let that fleeting moment pass them by, and that can either turn out one of two ways: one the idea will never be stumbled upon by another human being because it was either that brilliant or just that simple that no one else would have ever thought to think of it or two (the more likely option) someone else has that idea, patents it, and makes a lot of money off of an untapped market. This is to help anyone that may have had one of those ideas, but just did not have any idea what to do with it.
Part 1: Understand How a Patent Works
“A patent is a legal document that is granted to the first person to invent a particular invention” states Nicholas Godici, former Commissioner of Patents at the United States Patent and Trademark Office (USPTO). “It allows them to exclude others from making, using or selling the invention that’s described in the patent for a period of twenty years from the date that they first filed the application.”
A patent is a way to make the person with a great idea the sole owner of that idea. In the United States once an idea has been disclosed publicly or privately the inventor has one year to file for a patent. This means if the individual has an idea and tells anyone in the proximity that he or she will sell them that product they have a year to patent that idea before it is lost. It does not matter if at the time the invention has not yet left the confines of the inventor’s mind. If other people know about it, it is fair game after a year.
After the idea for an invention has popped into the person’s mind, the biggest step to take is to get that idea turned into a reality. It is not marketable if it is not visible.
Once the product is completed, the most important thing to do next is to see an attorney. Some people feel as if this step is not necessary; however, skipping this step can cause the inventor to miss out on other important steps – particularly documentation that must be taken down to insure that the inventor really is the inventor. Without documentation it is very easy for someone to appear and claim that the idea was stolen if they have documentation.
Attorneys are also very helpful with dealing with patent paperwork. They know the rules that must be followed during the application process and can ensure that the inventor does not accidentally do something that will cause them to lose ownership of their product. The biggest cause of inventors being denied a patent would be that they did not know about a specific piece of paperwork that they needed to sign during the process.
Attorneys can also run patent searches to see if the invention has already been invented by someone else. This is where knowing how to word things very specifically because attorneys can help inventors find a way to get their invention patented by finding small differences with inventions that may seem almost identical to the new invention.
Part 2: Know the Differences between Patents and Which One Is Right for You
There are three different patents that inventors can choose. Each one is specialized for a particular type of protection, and will last for different amounts of time. It is important for the inventor to know what type of patent is best for their particular type of invention.
The first type of patent and most widely used is called a utility patent. These are the patents that are needed for the invention of a new and useful process, machine, or chemical compound. The protection of these patents start the very day they are issued and last up to 20 years. These are also the subject of maintenance fees. Nearly 90% of applicants will use a utility patent.
The next is a patent for a design. This applies only to the ornamental design of a product that has practical use. It cannot be applied towards the actual function of an invention. This actually makes applying for this type of patent much easier as it is not as broad and much more specific on what it requires from inventors. It lasts 14 years after the date the patent is issued.
The difference between a design patent and a utility patent is that a utility patent is needed for the way an invention works and a design patent is needed for the way the invention looks. If the design for an invention has the ability to show a use for the invention, the inventor should apply for a utility patent instead to protect the function of the design.
The third patent application is the plant patent. This patent is for asexual plants that are either discovered or created and can be reproduced by cutting or grafting. The plant must be clearly different from plants that were patented before it. This will permit the owner from excluding others from selling, making, or using the plant for up to 20 years after the date of patent application has been filled. This patent excludes sexual and tuber-propagated plants.
There are also patents available that will help correct original patents, and there are other options in the U.S. Patent and Trademark Office that may give some people better options than the traditional patent.
A reissue patent is to correct a mistake in a utility, design, or plant patent that has already been granted. This patent will not affect or change the time and protection that the original patent has been allotted. The error that appears in the original patent will generally have to cause the patent to be inoperable or invalid in order to be approved for this type of patent.
The reissue is for mistakes that were not done purposeful or deceitful. They can also be used on the basis that the attorney filling the patent misunderstood the invention. If the inventor needs to broaden the scope of the original patent, they must do so within two years with a reissue patent. A narrowing reissue patent can be filed at any time as long as the patent has not expired. Once a reissue patent is granted, the original patent must be surrendered.
Inventors that decide they do not want to patent their invention, but would still like protection should apply for a Statutory Invention Registration (SIR). This is not a patent, but this will prevent anyone else from obtaining a patent on their invention. Anyone that has already applied for a patent may at any time during the pendency of their application apply for an SIR instead.
The inventor may decide to go this route for many different reasons that include they will not use the technology, money issues, or any other reason. This simply keeps other people from obtaining a patent for the same invention. The inventor should be warned that if they are granted an SIR they are giving up any right to a patent for this invention in the future.
There are also two types of patent applications for inventors to choose from. These are a provisional application and a non-provisional application.
A provisional application is less formal of the two and expires after one year from the application date. It was designed to provide a lower cost for first patent filing. The main goal of this application is to provide an early effective filing date that will later turn into a non-provisional application and will also be given the title as “Patent Pending.” Inventors will have to apply for the non-provisional application during the 12 months to take advantage of the early start with the provisional application. Inventors should be aware that if they choose to instead just convert the provisional to the non-provisional they will lose time that could be extended by filing for the non-provisional during the 12 months.
A non-provisional application is examined by a patent examiner. If all requirements are met the application may be issued as a patent. There are many forms and guidelines that must be followed very closely. This is to make sure that the patent is granted, and that the use of the invention will be applicable.
Part 3: Be Prepared and Have a Plan
Not everyone can afford an attorney, and this is a very important part of patenting an idea even though it is not necessary. To be able afford attorney bills and have money devoted to the development of the product, it is wise to build a business plan. This may seem a bit daunting, but it is as simple as stating the goals that need to be obtained with this product.
There are really two types of business plans, and someone working on making their patented idea marketable should probably have both. The first one is what the inventor will show to investors to create funding for the product. The second is for the inventor to keep and look at every day to keep them on track. They are both equally important. One earns the inventor money; the other makes sure they get it finished on time and it incorporates all of their goals.
A business plan that is shown to investors will need to address several specific things about the investor. These include the person’s goals, any help from others that will be given or sought after, and financial projections for the future.
The part of business plan that will sum up the investors entire product is called the executive summary. This is where the inventor will get the main point of their product across to the investor. It should be a very specific detail of what the product is intended for, what it plans to accomplish, and how it plans to earn money. It should be focused and specific yet give the investor a broad idea of what the product will do or accomplish.
Next, is the marketing plan. Here the investor will spell out how he plans to get customers. This should entail what type of people the product is intended for, where the inventor plans to sell it, and how much they will be able to produce at one time. The investor should list anything that has any relevance whatsoever to how this product will reach customers placed in this section.
The area of the business plans that investors are most eager to see is the financial projections. Here the investor will answer pretty much all questions concerned with money. Investors like to know how quickly they will be able to make their money back and more than likely make more. What does the inventor hope to reach for sales goals? What is the profit margin or how much will be made after creating the product and other expenses? Are there any large debts that the inventor expects to have? Most importantly the inventor should have done serious homework on when it is expected their product will start turning over a profit.
Lastly, anyone investing in a business will want to know about anyone that will be involved in this business. It is important to list the names of all people that will be involved in creating the product, marketing it, and running any form of the business associated with it. The person’s name as well as their title should be listed. It would probably be a good idea to give a brief explanation about why each individual is suited for their necessary role.
The inventor’s own personal business plan will not only keep him own track, but will also keep him fiscally responsible. If the inventor plans to use any of his own money, this will let him know how much can be spent in how much time. While this type of business plan does not need to be anywhere as formal because it is for the inventor’s eyes only, it would be a good idea to still use the same information. Knowing what the inventor is getting into ahead of time is highly important. Knowing what to expect ahead of time, will allow the inventor to be prepared for challenges that may come up, and it will make sure the product actually is as great of an idea in reality as it is in the inventor’s head.
Part 4: Build the Market
Market research is a very important step that many people seem to overlook when considering patenting an invention. Without a market there is no profit. A market is not really the main concern because there is actually a market for just about everything conceivable. The real goal here is to weed out the market. Find people and locations where the invention would be most useful. It can be a great idea all day long, but if it is not getting into the hands of the people who want it, then it is pointless.
The inventor is also allowed to manufacture and market the product while the patent is pending. This will usually mean it will come out of the inventor’s pocket as many companies will not give actual funding to a product until it is licensed to avoid legal problems.
The truth of it is marketing is a bigger job than landing the patent itself. The main goal of marketing a patent is to seek out companies that would be interested in selling it. This means weeding through those that have good reputations and the ones that do not. This will probably end up coming out to 50/50 situation. It is important to keep up with all paperwork of every company that the inventor comes into contact with. Also, before revealing too much information, it would be wise to have each company sign a non-disclosure form. The best people to contact at these companies will be people in upper sales that will be motivated to buy the product as opposed to those who work in engineering will probably only be interested in their own inventions.
The best way to find the right companies suitable for the product at hand is by doing actual market research on products that are similar. When the inventor has found similar products that have performed rather well, they should find which companies the products were sold from. These same companies may either be interested in more products of this kind, or it gives the inventor an idea to look for these types of companies that have not yet had a product of this kind available.
One way to market the product is by licensing or selling the patent. This can be used whether the patent has already been granted or if it is still pending. The same concept is needed that is used in marketing the product. Find companies that have similar products. The easiest way to do that is to do an internet search.
The best way to approach this is to send a marketing letter to the companies that would be most likely to be interested in the product. The letter should include that the inventor is considering selling or licensing their invention. The best way to get a company’s attention is by sending a brochure with pictures of the invention as well as website information. That way the company has the opportunity to get more information about not only the invention but the inventor, too.
A patent license is something the inventor will seek if they have no intention of marketing, creating, or selling anything based on the patent. Instead the patent holder will have someone else do those things. A licensing is a legal contract and should involve an attorney during each step to make sure that each side of the license understands their part.
A license can be cancelled if any part of the contract is not upheld; however, when a patent holder outright sells their patent it is permanent. All future profits and rights will be transferred over to the person who purchases the patent. In many ways a license is a better way to go instead of selling if it is possible. The original patent holder will usually get a little money upfront and get a certain percentage off of sales down the road, which can add up to a lot of money. When a straight sale is made the inventor will typically get one flat rate all at once. This may seem like a lot of money at the time, but can end up being significantly less than what could have been earned.
Part 5: Fees to be Aware of
Patent fees vary depending on many different situations. They tend to get a bit pricey, and this is one of the main reasons why people avoid trying to patent a good idea.
Utility patents have three main fees. These are the filing fee, issue fee, and maintenance fees. The filing fee is mandatory whether the patent is granted or not. This is just to have the patent examined. It is $125 for a provisional application. It is approximately $625 for filing a non-provisional application, and if the person also uses non-electric filing, it is an additional $200.
The issue fee is charged only if the application is allowed. This fee is approximately $870. Maintenance fees are paid at different times after the patent has been granted. The typical times are after 3 ½, 7 1/2, and 11 ½ years. These fees are to ensure that the protection is upheld on the patent. After 3 ½ years it is $565, 7 1/12 years is $1,425, and 11 ½ years is $2,365.
There may be additional fees that are applied. These are only those that are standard. Inventors should also be aware of attorney fees if they intend to seek out one’s help. That again is not required but recommend.
Patenting a unique idea and turning that idea into an actual product can be a grueling process. No one is going to pretend that it is easy, and sometimes the inventor may be tempted to give up. It is important to be well aware of the product in the beginning and have the faith that it will be successful. No one but the inventor can make it successful. If they do not have faith in their product then no one else is going to either.
A great product may change an individual’s entire life. While many sites are now saying that having a patent is not necessary, they are right it is not, but a patent provides something much more valuable… protection. Without it the inventor can have everything they ever worked for ripped out from underneath them, or they can be sued from someone who had created something similar to their design in the past. A patent would protect them from all of that.
Yes, it can get costly. It is important to not have any delusions about the cost of a patent, but that money can be earned back plus then some. The most important thing an inventor must worry about when it comes to money is that those who put in the hard work and are determined will be rewarded in this area. They should do their homework, be prepared, and find the best suitable market available. That is all that it takes to be successful.
References:
http://www.uspto.gov/inventors/patents.jsp#heading-6
http://inventors.about.com/od/inventing101patents/f/patenting_fees.htm
http://www.startupnation.com/business-articles/893/1/AT_GetYourselfAPatent.asp
http://sbinformation.about.com/od/patents/a/inventionideas.htm
http://www.uspto.gov/faq/patents.jsp
http://www.uspto.gov/web/offices/ac/ido/oeip/taf/patdesc.htm
http://www.ideabuyer.com/writingabusinessplanforyournewpatent
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